Artificial Intelligence: Real challenge for traders

Vikas SinghaniaTrade Smart OnlineFinancial markets globally are changing not only in terms of price movements, informed participants, increased money flow and volatility but also structurally. While the others have always been a part of changing markets, it is the structural change that has the tendency of being disruptive in nature. The first sign of change was visible in Chicago that was the last bastion of open outcry trading system. This summer Chicago Mercantile Exchange Group closed most of its trading pits after 167 years. The reason – machines. Algorithmic trading has fast replaced humans, accounting for nearly 70 per cent of trading volumes in leading exchanges globally. Where strategies are made for taking advantage of split second mispricing, human speed is of little use. In India algorithmic trading has just…